Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1887-08-26
PATRONs Of HUsBANDRY.
MORTIMER WHITEHEAD.

ter their own business Interests through
organized effort In the Grange than in
the many successful Grange fire insnr-
snce companies that have been started
and are now running successfully In
many ofthe States Of the Union. Lit
orally they are saving millions Of dol
lars to farmers every year. And how
simply and how plainly it is accom-
plished. In the old way the farmer
who insured his buildings paid in addi-
ton to the amount really required to
cover the risk, all these extras, VIZ:
local agents commissions, general
agents commissions, large salaries Of
officers, cost Of expensive headquarters
buildings, amount added to Surplus
Of the company undivided property,
dividends divided profits, greater
risks and therefore expense ofcity fires.
Under the Grange plan he only pays
for the fires. and the exceedingly small
sum required to run the company.
The State Insurance Commissioner of
Massachusetts is authority on insurance
matters. Two years ago, in his annual
report, he said:
"The too great costs of insurance
challenges the attention of a frugal
public. We pay too much for insur-
ance protection. Plainly it
should not, as for quarter of century
it has, cost the people of this country
hundred million dollars and more to
protect themselves by insurance against
sixty million dollars loss Of property by
fire.
In his report for 1886 the Commits
sioner states "The country suffers itself
to be taxed annually an immense sum
for the support of numerous
army of insurance brokers and super
serviceable agents, who produce moth
ing and serve no valuable use whatever.
| believe that the people of Massschu-
sets pay each year for fire insurance
sum beyond its fair cost under an eco
nomical administration Of the business
upon correct methods, equal to the an.
nual State tax"
In his last report 1Ss7I just issued,
the Commissioner continues: "rwo ell.
ements make up the cost Of insurance,
~ the payment Of losses, and ~ the
expenses of carrying on the business,
which, if conducted on the stock plan,
includes profits to the capital engaged
in it. These may be termed the lost cost
and expense cost The ex-
pense cost was the larger part of the
cost OF fire insurance in 1886 to the peo-
pie Of Mass. The same Is true Of the
year before. The popular discomfort
with the expensiveness Of fire Insurance
protection Is manifesting itself in efforts
to cheaper it by avoidance Of needless
expense in the Transaction OF the bust
ness and by expedients to prevent loss.
A great influence is exerted by the mu-
tuals, which save the expense Of capital,
and escape the burdensome charges for
procuring business In the form Of com.
missions to agents and brokers"
These insurance lessons are among
those that farmers have been learning in
their Grange halls, and many companies
are now in successful operation in the
States of Ohio, Michigan, Indiana, Hi.
nois, Wisconsin, Iowa, Maine, New
Hampshire, Pennsylvania. Delaware,
New Jersey, Vermont, and others. In
the Jefferson County IN. W Patrons
Fire Relief Association the cost for in
surfing 81 900 was $2.lS for five years;
and in the Chsutauqus County IN. ~
Patrons Fire Relief Association, sl.76
for three years.
The following report of sixty.one CO.
operative companies, submitted to the
State Grange Of New York in 1888,
shows what the farmers Of that State are
saving i'm the item of fire insurance:
Number of policies in force, 81, l43;
amount Of risks in force, SCI ,76l, 715;
average amount of each policy, 81 $685.
.16; average cost of 81 900 three years,
at $1.s4, $113,64l.66; cost Of insuring
same amount three years in stock COM
panies, at IS per 1000, including sur
vey and policy, $494, 093.72; difference
in cost, $3.50, 452.l6; interest on differ
ence in cost for three years, s6S, 4sl.39;
total saving to the policy-holders in The
cooperative companies for the years,
s44s, 1856.
The Patrons Androscoggin Mutual
Fire Insurance Company, Of Maine, had
risks in force Dec. 81, 1856, to the
amount of 81, oil 1923. Risks written in
1886, 1921, $40. Whole amount OF cost
of insurance for $1,000 for five years,
1854.
The Husbandman Fire Insurance
Company, Of Vermont, commenced to is.
sue policies Feb. II, 1880. Whole
amount of property insured up to Jan.
l, 1887, 81, ll6,O25. Total expenditures,
IS, 1851 81 for the seven years.
One of the oldest fthese Grange nu-
tual fire insurance companies. "The
Farmers Reliance" of New Jersey,
gives the following figures in its last
annual report: Whole amount insured,
81 ,29s, $50; running expenses one year,
$l3l.35; increase Of business for the
year, $50, 900.